Would the tax position be better if the holiday home were in, say, France or Spain?
No. Tax does not end at Dover, and dealing with two fiscal regimes is likely to create complexity. Billy Mackay of Skandia Life says, for example, that British pensions are structured as trusts but neither French nor Spanish law recognises this concept. So pension funds would have to set up companies to own property in these countries – and this is likely to increase costs and may even trigger tax bills in those jurisdictions. Is there anything else I need to consider if I keep my pension investment in residential property – or any of those other assets – in the United Kingdom? Yes. Remember your pension is meant to support you when you stop working. Or as David Scott, managing director of UBS Wealth Management, said: “Despite the obvious attractions of art, wine, antiques and holiday homes, we normally recommend that clients don’t invest more than 5 per cent of their overall wealth in such ‘alternative’ investments.” What did you mean when you said savers would have greater choice abo
